The following costs were incurred by AstraZeneca Limited on the construction of a new retail outlet building which began on 1 April 2017:

1. Freehold land $ 4,500,000.00
2. General Overheads $ 740,000.00
3. Professional fees $ 620,000.00
4. Excavation and demolition $ 1,650,000.00
5. Materials $ 7,800,000.00
6. Direct labour $ 11,200,000.00
7. Legal Fees $ 2,400,000.00

The store was completed on 1 January 2018 and brought into use following its grand opening on 1 April 2018. AstraZeneca Limited issued a $25m unsecured loan on 1 April 2017 to aid the construction of the new store. The asset is expected to last for approximately 40 years.

Required:

A. Calculate the amount to be included as property, plant, and equipment in respect of the new store assuming there is an agreement to repay the loan at an interest rate of 8% per annum and is repayable on 1 April 2019. Show all workings.

B. Explain the impact the above information would have on the income statement (if any) for the year ended 31 March 2018. Show all workings. 

C. In addition to the information in (part A) above, assume that the loan was disbursed for constructing the store as follows:

1 April 2017 $15,000,000

1 July 2017 $5,000,000

1 October 2017 $5,000,000

D. During the accounting period AstraZeneca Limited. has invested the surplus funds at an interest rate of 3% on a temporary basis before these were required for spending. Calculate the number of borrowing costs that would be eligible to be capitalized as of 31 March 2018. Show all workings. 

E. Outline the model used to determine the value of the asset to be recognized in the accounting records of AstraZeneca Limited for the period ending 31 March 2018 and any assumption(s) made with regards to the relevant IAS(s).